Documents released at the Washington trial on Tuesday revealed that Meta’s CEO Mark Zuckerberg had considered spinning off Instagram in 2018 in anticipation of a potential anti-trust lawsuit.
In an email, Zuckerberg mentioned that history shows improved performance after companies split, indicating his willingness to potentially spin off Instagram and WhatsApp.
During the trial, Zuckerberg admitted that he acquired Instagram because it had a better camera than what Facebook was trying to build at the time, acknowledging Instagram as a fast-growing and threatening network.
These revelations seem to support allegations by US antitrust enforcers that Meta stifled potential rivals, used a “buy or fill” strategy to suppress competitors, and maintain illegal monopolies.
The trial, which began during Donald Trump’s first term, serves as a test for the administration’s commitment to challenging large-scale tech companies.
Zuckerberg also acknowledged the company’s failed attempts at building their own apps, stating that building new apps is challenging and many of their attempts have not gained traction.
Meta’s defense hinges on the argument that past intentions are irrelevant, as the FTC’s definition of the social media market is inaccurate and fails to acknowledge competition from platforms like TikTok, YouTube, and Apple’s messaging apps.
The FTC has accused Meta of maintaining monopolies on platforms like Snapchat and MeWe, claiming that platforms where users share content with strangers based on shared interests are not interchangeable.
Source: www.theguardian.com